37990) of May 2009 The WritePass Journal

The Intel infringement case (Comp/c-3/37990) of May 2009 Introduction The Intel infringement case (Comp/c-3/37990) of May 2009 IntroductionReferencesRelated Introduction Within the context of this given case, we aim to examine the background of the Intel infringement case reference Comp/c-3/37990 Intel of 13 May 2009, Intel are held responsible for infringing Article 83 of the EC Treaty where it has been found guilty of abusing its dominant market position on the x86 central processing unit (CPU) market by awarding rebates. We shall consider the basis on which the Decision Commission has made this decision to fine Intel and what evidence contributes towards this investigation. In addition to this, we will also be examining whether the decision taken was justified and if it had any kind of positive outcome on the consumers. If we consider the guidanc on the Commission enforcement priorities in implementing Article 82 on the EC Treaty to abusive exlusionary conduct by dominant undertaking. According to the Article 82 of Treaty that clearly outlines the EC Article 82 forbids any kind of abuse of a dominant position in the market. This goes hand in hand with the case-law where it is considered illegal for an undertaking to be in a dominant position and that such a dominant position is entitled to compete purely on basis of their hard work and merits. However, it should be noted that the undertaking concerned as a special responsibility forbidding its behaviour to diminish authentic deformed competition on the common market. It should be noted that Article 82 is considered as the legal fundamental for a critical element of competition policy and its effective enforcement that helps market operate more efficiently and effectively for the advantage of businesses and its consumers. It (Article 82) outlines the enforcement priorities that will guide the Commissions action in implementing Article 82 to exclusionary conduct by dominant undertakings. In addition to that, it attempts to offer a greater deal of accuracy and speculation in relation to the general framework of evaluation that the Commission recruits in determining whether it should pursue cases that relate to the various kinds of exclusionary conduct and to help undertakings better assess whether specific behaviour is likely to result in intervention by the Commission under Article 82. According to the application of Article 82 to exclusionary conduct by dominant undertakings, the Commission will emphasise on the kinds of behaviour that are most hazardous to consumers. It can be noted that even though it is the customer who is most likely to take advantage from the stiff competition, as it results in lower prices, good quality and a diverse choice of new enhanced services and goods. It is the duty of the Commission to instruct the enforcement to make sure the market operates in the precise manner, also making sure consumers take advantage from the efficiency and productivity that results from effective competition between under-takings. If consumers are excessively charged a high price or influencing their behaviour that under-estimates the efforts to accomplish a combined internal market that is considered to be liable of infringing Article 82. In regards to implementing the general enforcement fundamentals and rules set out in the Commission, it will take into account the specific facts and circumstances for every individual case. [Ref 1] Let us consider the background of the Intel case, Intel has a reputation for specialising in manufacturing microprocessors (CPUs) and chipsets for user personal computers. This is registered proprietor of well known brand names, such as: Pentium and Celeron. The Intel case is a perfect example of how cruelly and sensibly a corporation can take an advantage of its leading dominant position in the market. This case clearly outlines the inherent differences between the monopoly compared by intellectual property rights and the Treaty competition rules that forbids any form of abuse of dominant position. Intel has cleverly registered numerous thousands patents to safeguard its creative inventions and it is impossible in a pragmatic sense for its rivals to know in advance whether or not their products may read on Intels patents. Interestingly, Intel was found guilty of infringing its dominant position in relation to VIA, which is considered as one of Intels direct rivals in both the chipsets and CPU markets. As VIA was in need of the various components due to the interoperability, also due to the critical requirement for compatibility with Microsoft operations software. In order to make this operate, VIA required a licence from Intel that would allow them to use its patents in the design and manufacture of its chipsets which would let them communicate with Intels microprocessors. In addition to this, VIA also was in need of a licence in relation to its supply of CPUs so that they are completely Windows compaitable. It should be noted from the year 1998 to the year 2000, both the parties had a reciprocal chipset licencing agreement. By December 2000, Intel launched its latest Pentium 4 processor in the market, simultaneously that VIA would require a licence. A new licence was therefore by Intel on non-reciprocal conditions. Furthermore, such a proposed agreement envisaged an asymmetrical licenced that would entitle Intel to unlimited use of all the VIA patents and technology but VIA would only be able to acquire a licence to use Intels technology to manufacture and sell only specific chipsets. In addition to this, it even proposed a market division which would limit the VIA licence to the manufacture of chipsets for use with Pentium 4 processors, however it could not be used in conjunction with any enhanced versions of that same processor. According to VIA, Intel was infringin (September 2001) Article 82 of the EC Treaty and Chapter II of the Competition Act 1998 and it is not entitled to relief in circumstances where this would compel VIA to enter into a licence agreement consisting of illegal terms and conditions. In regards to the CPU Action, VIA outlined the two key competition law defences,   these consist of Intels refusal to licence its Pentium 4 technology which is considered as a violation and abuse of its dominant position in the CPU market. Secondly, Intels refusal to licence its prospective rights was abusive primarily because these rights related to technology that was the industry standard and which was significant in order for its rivals to have access to the CPU market. The refusal would eliminate competition from VIA and protect VIA from marketing valuable new products ( the essential facilities defence). It cannot be denied that the case is indeed very complex in its structure and nature , it consisted of a thorough and comprehensive investigation that was taken by the Commission. Whether Intel was accountable for abusing its dominance in the market by imposing a licencing policy for exploiting and enforcing its large portfolio of patent rights is evident from the various names that were included in this long list of names who complained of Intels abuse of power. It can be observed that within the Intel case, there are obvious signs of conditional rebates where they were bestowed to consumers, rewarding them for a specific kind of purchasing behaviour. Furthermore, such rebates within a dominant undertaking can have an actual or prospective pledge effects that are similar to exclusive purchasing contract. Intel was adamant to refuse granting of a licence on any kind of reasonable conditions, this clearly demonstrates its abuse of its dominantnposition in the CPU and chipset markets. Due to the patents being the industry standard it was impossible for chipset manufacturers to enter the market unless they were able to make use of Intels gateway technology. Interestingly when multi-product rebates take place, it is purely considered as anti-competitive, this is what exactly Intel did, it tried to do so on a tying market if it is a huge market that equally efficiently provides some of the key components however they cannot compete against the discounted bundle. Why is the CPU so much of an importance in the Intel case? This is primarly because the CPU is considered as an essential component of a computer, in regards to the actual performance and cost of the system. Furthermore, the manufacturing process of the CPU requires high technology and expensive facilities. The CPU is segmented into two sub-categories: CPUs of the x86 architecture and CPUs of a non-x86 architecture. The x86 architecture is a standard designed by Intel for its CPU. It can operate on both operating systems (Windows and Linux). According to the Commissions comprehensive investigation in the x86 CPUs, the relevant product market was not under the market of x86 CPUs. It can be noted that the 10 year period that has been considered and included by the Decision Commission   (1997-2007), Intel was seen to be continuously in a leading position, in terms of its market shares which were excessive by 70%. In addition to this, there were important obstacles to entry and development present in the x86 CPU market. Intel is a powerful and reputable brand, it saw a rise in its brand reputation due to product differentiation that contributed as an obstacle or hindrence to entry. The recognised high level of obstacles to entry and development are constant with the observed market structure, where all the leading rivals to Intel, apart from AMD left the market or they lacked some kind of importance. Furthermore, it can be observed that from October 2002 to December 2007,   according to the Decision, Intels market shares and obstacles to entry and development, Intel held a dominant position in the market. In terms of the condition rebates offered by Intel, it awarded major OEMs rebates that were conditioned on these OEM purchasing all or most of their supply requirements; this entails numerous brand who were offered these rebates. Dell was offered rebates for three years   December 2002- December 2005) that conditioned Dells purchasing exclusively Intel CPUs. With regards to the payments and rebates Intel offerd a major OEMs and MSH which are seen with context of the growing fierce compeition threat that AMD portrayed. With this regard, the Decisions demonstrated that OEMs, IT managers and Intel considered that AMD products had numerous positive innovative factors and they were considered a viable option to those of Intel. In essence, it can be agreed that the conditions of the case-law for detecting prospective abuse were evidently found, the Decision also conducted an economic analysis of the capability of the rebates to foreclose a rival that would be efficient as Intel, albeit not dominant. According to the found evidece collated by the Commission, it led to the conclusion that Intels conditional rebates and payment induced sincerity of key OEMs and of a major retailer, the effects of which were complementary in that they most importantly diminished rivals ability to compete on the merits of their x86 CPUs. Furthermore it can be added that Intels anti-competition conduct thereby resulted in a decrease of consumer choice and in lower incentives to innovate. Intel believed it did not wrong, it clearly defended the rebates and it stated in the two different kinds of arguments, that it wanted to introduce a rebate that would allow them to respond to price competition from its rivals and therefore it met stiff competition. Secondly, by using the rebate, it adopted a vis-a-vis every individual OEM was considered as significant, in order to accomplish significant efficiencies that were pertinent to the CPU industry. Intel carried on debating there were four different kinds of efficiencies that were accomplished by any exclusivity requirements of its rebates and production efficiencies and risk sharing and marketing efficiencies. According to the findings by the Commission, Intels debates relating to goal justification are flawed as they relate more generally to behaviour to which the Commission did not report (i.e.discounting of rebates) and not to conduct to which the Commission did object ( conditions relationg to rebates) and non of the efficiency defences offered an appropriate justification/ valid explanation for the behaviour questioned. It can be concluded that as a whole that the conditional rebats granted by Intel to Dell, HP, MSH and NEC collectively point at the abuse of a dominant position under Article 82 of the Treaty and Article 54 of the agreement. In addition to this, the individual abuses are also considered as part of a single strategy focused at foreclosing AMD.   Therefore the individual abuses form a part of a single infringement of Article 82 of the EC Treaty. In addition the Decision states that Intel practices were implemented collectively at two tiers of the distribution chain or cycle that can be viewed in the context of the rapidly growing competitive threat that are portrayed by AMD. Intel wanted to destroy the ability of AMD to compete at the same scale which would then result in making AMD weaker and be unable to match the same merits and standards as that of Intel, therefore, deliberately preventing them from selecting non-Intel based compueters on the merits. (i.e. quality and price of CPUs). The Decision determines that Intel has certainly infringed Article 82 of the Treaty and Article 54 of the EEA Agreement by getting involved in a single and consistent infringement of Article 82 of the Treaty and Article 54 of the EEA Agreement from October 2002- December 2002 by imposing a strategy targeted at foreclosing its rivals from the x86 CPU market. Intel was issued with a legal notice refraining it from any act or engaging in any activity that has the same or similar effect of this kind. It can   be concluded that the decision taken by the Decision Commission is certainly justified and even though consumers may have benefited from the decision, it was much more important for Intel to realise its mistake in abusing its dominant position in the market. References Communication from the Commission - Guidance on the Commissions enforcement priorities in applying Article 82 of the EC Treaty to abusive exclusionary conduct by dominant undertakings (Text with EEA relevance. Retrieved 8th April, 2011. From:http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52009XC0224(01):EN:NOT Howard, A (2003). Intel v VIA. Retrieved 9th April, 2011. From:monckton.com/docs/library/Intel%20v%20VIA%20Casenote.pdf Summary of Commission Decision of 13 May 2009 relating to a proceeding under Article 82 of the EC Treaty and Article 54 of the EEA Agreement (Case COMP/C-3/37990 – Intel). Retrieved 9th April, 2011. From:http://ec.europa.eu/competition/sectors/ICT/intel_summary_decision_en.pdf

PESTLE analysis for John Lewis and Marks and Spencer Essay

PESTLE analysis for John Lewis and Marks and Spencer - Essay Example higher level of political scrutiny over food retail outlets because it is the second largest employer in the UK; with public health assuming a more important focus, there has been a tighter regulation of food stores for this Company. Transition from the traditional supply chain management system to a system of vendor managed inventory, which in conjunction with a tailor made forecasting package, has produced gains for Marks and Spencer and made it one of the most profitable and efficient retailers. (Storey et al, 2003). The Company rarely needs to sell its products at discounts because the supply side is well managed. The percentage of revenues accruing from international sales has increased to 7.1% of group turnover.(2007 Annual report), however maintaining this is a challenge in the face of increased competition in the European Common Market, the development of the common currency – the Euro and changes in VAT Marks and Spencer started off primarily as a clothes retailer; however it has now expanded into food and home products to compete effectively in the global market. British retail competitors of Marks and Spencer are also large corporate chains, which may have their headquarters outside the country, hence outsourcing activities and knowledge management becomes a key element affecting operating as well as long term profitability. Marks and Spencer staff have mostly been recruited young and continued within the organization for many years; as a result, there are some set procedures and routines in operating which have become integral to the staff and has produced resistance among employees to changes within the organization.(Mellahi et al, 2002) Existing markets for Marks and Spencer have expanded beyond UK and has produced a change from the traditional focus of London as the major retail center to a more diffused network of customers and stores across the globe. Companies are required to improve corporate governance in accordance with the Turnbull

Distributors Dell Essay Example | Topics and Well Written Essays - 750 words - 10

Distributors Dell - Essay Example From this paper it is clear that, due to this illicit practice which violated the contract Dell had signed with these distributors the company had to file lawsuits against their own distributors. Another mistake Dell made was that it did not foster long term relationships with distributors in order to create partnerships. There was a sense of distrust between the distributors and Dell because the distributors believed that Dell at any time would stop using their services and introduce a direct sales model in China. A third mistake the company made was that it did not invest any resources in to enhance functionality of their supply chain function with its distributors. The company could have gotten more involved in the operation of its distributors by providing managerial and technical assistance. If the company would have established a mutual relationship based on respect and high ethical standards the distributors would have seen Dell as a business allied instead of just another com pany with a product to sell. When a company creates close relationship with suppliers and distributors it enables a business to obtain concessions and favors the firm would otherwise not receive. A fourth mistake the company made was delegating market strategy to its distributors. The communication between Dell and its distributors was weak. Due to this fact the distributors moved the merchandise utilizing their own criteria without taking into consideration any strategic input from Dell. The problem with the direct model in China was that the company was entering a market in which the people had different expectations than the US market. First of all a computer purchase to a Chinese person means a lot more than to a customer in the US or Europe because a worker would have to save money for nearly two years before they could make such a purchase.  

Professional Development Plan Essay Example for Free

Professional Development Plan Essay When forming teams in a professional work environment it is important to understand the personalities of your teammates to determine strengths and weaknesses. When a leader is able to define the strengths and weaknesses of the team members it is easier to delegate tasks, encourage brain storming sessions and be successful as a team. Team C is composed of five members all with great leadership skills and a desire to learn and complete excellent work together. The first week of class we completed a DISC assessment that identified our individual personality traits. According to Disc Profile (n.d.), The initial DISC model comes from Dr. William Marston, a professor at Columbia University in the 1920s, who was curious about the behavior of normal people. He did not create an instrument from his theory, but others did† (Disc Overview). As a potential leader of this team, I was able to examine my own leadership styles and apply that to our assignment which is to create a professional development plan to identify the characteristics of the members to lead them to success. My DISC assessment concluded that I was a Cautious personality type. I see this in my personality. I often think or overthink what I do and tasks that I complete at work and in the school environment. I rarely rush into an assignment or partially complete an assignment. I often am very detail-oriented in projects and assignments. My leadership mentality is mainly to lead by example. I rarely will task another person without knowing exactly what is involved in completing the job. This is probably due to a desire to have control over a situation and know exactly what is involved and how long it will take to complete. Plus I am a person that prefers to build trust by having examples of competent behavior to reference. Three members of my team have the â€Å"Steadiness† personality. Betty, Shawn, and Harlan are more steady and security-oriented, meaning they prefer to know precisely what they are doing as far as job related and school related tasks are concerned. When leading them in the team I would make sure they  understand the assignments of projects we work on as a team and I may be able to help them understand the projects better by fully explaining what we would hope the result would be. This might help team members to have more confidence in the projects. Brian has an interactive personality and it shows as he is able to learn about an assignment and take charge in explaining and delegating tasks for it. Brain is very confident in his assessments of situations and tasks. He has a very good way of being so excited about an assignment that it influences others in a positive manner. If I were to lead this team, I would have to have an understanding of the strengths of Brian’s ability to motivate the team and my ability to help the others understand the project so we may be successful in completion. Betty, Harlan, and Shawn are the key players in this as they will strive to do an incredible job in maintaining a strong will to succeed and complete the tasks. As a general rule, the steady personality listens well, creates very strong relationship bonds and work very well with others (Uniquely You, n.d.). They are able to be objective about situations that other people might not handle well. They can handle stress well and are reliable and really care about others feelings and will often take action that will help others feel good. References Disc Profile. (n.d.). Retrieved from https://www.discprofile.com/what-is-disc/overview/ Uniquely You. (n.d.). Retrieved from https://www.uniquelyyou.com/disc.php

Good Vs. Evil In Treasure Island Essay -- essays research papers

Throughout many works of literature, a prominent theme has been “Good vs. Evil';. Many authors base the plot of their novels around “good guys'; fighting the “villain';.Robert Louis Stevenson contrasts good and evil through many of the characters thathe creates. In the story “The Strange Case of Dr. Jekyll and Mr. Hyde';, Stevensoncontrasts the characters of Dr. Jekyll to Mr. Hyde to further the theme “Good vs. Evil';. This theme is common to many of Stevenson’s other works. In TreasureIsland, Stevenson uses the character Long John Silver to bring out this identicalidea. Long John Silver in many ways can be viewed the classic villain. But, whilereading this novel, one must be aware of the many other facets of Silver’spersonality that bring out his good nature. In Treasure Island and “The Strange Case of Dr. Jekyll and Mr. Hyde';, Robert Louis Stevenson incorporates the theme “Good vs. Evil'; in both of these stories through the split personalities of both Long John Silver, and Dr. Jekyll.   Ã‚  Ã‚  Ã‚  Ã‚   Robert Louis Stevenson’s theme of “Good vs. Evil'; is prominent in the novel Treasure Island. This story begins by introducing the protagonist of the novel Jim Hawkins. Jim works at an inn, which his mother owns. An old buccaneer is staying there by the name of Billy Bones who possesses a mysterious sea chest, which many people seem to want. While he was staying at the inn, many people attempted to steal the chest from the buccaneer. Billy Bones is a very heavy drinker, which may have been the cause of his death while staying at the inn. After the death, Jim’s curiosity for the old chest overwhelms him. Jim opens up the chest and finds to his pleasure an old treasure map. Jim immediately brings the map to Dr. Livesey, a friend of Jim’s family. Dr. Livesey and Jim decide to gather up a crew and sail to Treasure Island aboard the Hispanola to find the buried treasure. While looking for a cook, Dr. Livesey comes across a man by the name of Long John Silver. Because of Silver’s vast knowledge of the sea and his great cooking, he is named the head chef of the ship. Silver has other plans in mind though. As soon as he boards the ship, Jim sees him as a nice, intelligent man. This all quickly changes as he ove... ...ry Jekyll to an end'; (Jekyll p62).   Ã‚  Ã‚  Ã‚  Ã‚  Henry Jelkyll’s character is one full of uncanny genius, stubborn curiosity, and towards the end of the story unfortunately, despair. Hyde’s character is the complete opposite, one of malignancy and immorality. Jekyll’s genuine righteousness is exemplified by his own struggle with Mr. Hyde and eventually with his self-destruction. He realizes that Hyde will not cease his continuous onslaught of crimes, and pays the ultimate price for the well being of his friends and community. While one may say that suicide is an act of selfishness, Jekyll’s suicide must be looked upon as an honorable discharge from his life of woe.   Ã‚  Ã‚  Ã‚  Ã‚  These two stories discuss the continuous battle between right and wrong which we encounter every day. Whether at work, school, or on a ship hunting for treasure, the choice between right and wrong will be made. Stevenson composed both of these pieces with that very idea in mind. The split personalities of Jekyll and Silver are fictional, but they represent the many daily temptations which all of us must resist every day of our lives.

Memorandum – for Hospitality

Memorandum To: Kitchen Operations Staff From: Human Resources Date: 30th February 2013 Subject: Prevention of food poisoning. This memo is intended to inform and update employees on the work practices in the kitchen that are important in the prevention of food poisoning. Employees are expected to have a clear understanding of The Food Act 2003(NSW) and Food Regulations 2004(NSW). A copy of the Act is available with your supervisor for reference. Food handlers are legally obliged to follow these requirements. Please ensure a HACCP process is followed during the production of food.Periodic checks and audits from internal and external teams are necessary to ascertain proper HACCP processes are followed. (It should be noted that HACCP process is a legal obligation for food handlers). Employees must maintain proper personal hygiene. This is inclusive of some golden rules such as good personal grooming, treating cuts and wounds and washing hands regularly. Personal health issues that pose a risk in the workplace (food borne/airborne diseases, illnesses such as influenza or infections from open cuts/wounds) should be treated as soon as possible.Food preparation procedures include proper maintenance of the food preparation areas and food service areas. Particular care must be taken to the correct hand washing technique and the usage of gloves when handling food. Safe food storage is a legal obligation. Goods should be stored according to the manufacturer’s instruction, temperature controlled , properly packed and labelled, checked for expiration, follow stock rotation, avoid storing chemicals in old containers and store substances in separate well-lit and ventilated storerooms.Ensure that the bins are sanitised and emptied regularly. Be sure to categorise the waste storage area so that waste and recyclable items are separated. Objects and areas such as work benches , utensils , dinnerware and glassware should be cleaned and sanitised thoroughly to prevent contam ination. Regular checks to be done on temperature controlled equipment. Maintaining temperature is an important aspect of food preservation.Any malfunction of these equipment should be immediately reported and rectified. All of the above if not followed can cause food contamination which could possibly lead to Food poisoning which broadly falls under Chemical (caused by the presence of chemicals – such as cleaning agents ), Biological (harmful bacteria that is formed on food due to food spoilage from incorrect preservation of food) or Physical ( caused by glass fragments or metal shavings from incorrect preparation process) food poisoning.Signed, General Manager Human Resources Riya Jude __________________________________________________________________________________ All employees must read this memo and sign the declaration below: I read and understood the work practices in the kitchen that are important in the prevention of food poisoning. Name:| Signature:| Date:| | | | | | | | | |

Should Abortion Be Legal - 863 Words

Imagine a woman was raped and later became pregnant. Shouldn t she have the right to abort the child or should she be forced to deliver? Put yourself in her shoes. Can you imagine the pain she might feel every time she looks at the child? Should she be forced to endure this? Women should be allowed to have abortions under circumstances such as these. Abortion has been a topic of debate for centuries if not longer. Abortion occurs when a fetus is removed from a woman s body before the fetus is able to fully develop. Before the 1800s, not many laws existed concerning abortion. It was not until 1973 that the Supreme Court listened to a case concerning abortion. In 1973, the Supreme Court struck down all state laws that had ruled abortion illegal in Roe versus Wade. However, many still argue that abortion should be illegal. Abortion should be legal and an option available to expecting mothers due to issues such as rape, life or death situations in mothers, and teen pregnancy. In every situation, there are exceptions. Rape should be one exception as to why abortion should be legal. It is estimated that between 1 and 2 percent of pregnancies are an result of rape and/or incest. While this number may seem like such a small percentage, this means that about 1 and every 6 pregnancies is a result of a woman that was raped. Should a woman who experienced such a tragic event be required to keep a child that serves as such a reminder. In my opinion, no. One of the mostShow MoreRelatedAbortion Should Not Be Legal1647 Words   |  7 PagesOne of the most highly debated topics is abortion and whether or not it should be legal. People who oppose abortion, meaning they are pro-life claim that abortion should be completely illegal with no aspects of it whatsoever; it can be a murder for the people standing against it. The other side of the argument, meaning people who are pro-choice, defend it by believing it to be a right been given to the women. 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